With inflation still a concern for people in the us and around the world, hosting is once again proving to be a vital tool to earn extra income. Recently, Ansel Troy, host of a Host of a tiny house in Oakland, conducted a satellite media tour to talk about his experience being an Airbnb Host and the financial benefits of listing a unique space on Airbnb.
A video accompanying this announcement is available at: https://youtu.be/kv2NETtMVWI
Airbnb started in 2008 during the Great Recession, at a moment in which people across the US and around the world were looking for new ways to earn extra income. Now, in the midst of a new economic downturn, hosting is once again proving to be a vital tool to earn. According to a recent survey conducted by Airbnb, 41 percent of Hosts in the US reported that one of the reasons they host is to earn money to help navigate rising prices.
Airbnb is sharing new findings showing that new Hosts began opening their doors amidst growing inflation in Q2 2022 – as well as new insights into how these new Hosts are sharing their space as well as their ability to earn.
More people start hosting as inflation increases
Inflation has been climbing higher around the world. At the same time, more people have begun hosting, specifically in top tourism destination countries with high growth in inflation. While there are other factors that contribute to Host growth – including seasonality, demand and product initiatives – according to Airbnb’s analysis, on average, a one percentage point increase in the inflation rate in a top Airbnb market was correlated with a nearly four percentage point increase in the number of new Hosts in that country for Q2 2022.
In the United States, where inflation hit 9.1 percent in June 2022, the number of new Hosts grew by more than 50 percent in Q2 2022, compared to Q2 2021.
For new Hosts, it’s mortgages on their mind
Hosts around the world have long shared that hosting helps them to afford their home – with the need to pay for their mortgage or rent even serving as a reason why many began hosting in the first place. According to an Airbnb survey, nearly 40 percent of Hosts in the US said that the income earned through hosting has helped them stay in their home in 2021.
Now, with the cost of homeownership rising, new Hosts in the US are not only turning to hosting, but also may be hosting more frequently when they get started, to increase their earning potential and cover a larger mortgage. Regions with the greatest hikes in local residents’ mortgage payments also saw an increase in earnings for typical new Hosts in Q2 2022 – suggesting more hosting activity. In fact, according to Airbnb’s analysis, in Q2 2022, a $1 rise in the average American’s monthly mortgage payment – due to the hike in mortgage interest rates from three percent to six percent – was correlated with a 26-cents increase in a new typical Host’s earnings for the quarter.
New Hosts see the opportunity to earn
Inflation may be rising, but so too is the income Hosts are earning. As Airbnb has reported, in 2021, the typical Host in the US earned over $13,800 – an increase of 85 percent over 2019. The typical income of $13,800 represents over two months of pay for the median US household. For those who have begun hosting recently due to the changes in cost of living, the ability to earn is still strong: New Hosts earned a combined total of over $1.8 billion globally in 2021, up more than 30 percent from 2019.
And this opportunity has continued into 2022 – including for younger Hosts, many of whom have discovered hosting as a way to fulfill their dreams even as new financial responsibilities and burdens stack up. In the first three months of 2022 alone, Hosts under 30 in the US alone earned approximately $200 million – after earning approximately $775 million in all of 2021.
Hosts are sharing the space they have to get started now
With these new economic pressures, more people are not only looking to start hosting, but also to do so flexibly – leveraging the space they have to earn, and quickly. New listings that were activated and booked in Q1 2022 are getting booked faster compared to a year ago, with the average time to get a first booking for the majority of new listings being about a week. In many cases, Hosts are tapping into the demand for more unique spaces to earn real income, with unique listings earning nearly $1 billion just in 2021.
Take Host Ansel in Oakland, California, who decided to put a tiny home in his backyard and list it on Airbnb as a way to earn some passive income. After spending about $5,000 on the home itself, Ansel needed to get the rest of the space ready for guests on a budget. Though far from a trained designer, he purchased some tools, rolled up his sleeves and took to the web to teach himself everything from painting to propagating a plant wall in his bathroom – now one of the biggest selling points of his tiny home to guests. Since he began hosting in 2018, Ansel has earned more than $98,000, with the goal of setting up another listing in his home that he hopes will go viral. For Ansel, his own experience is proof that anyone can Host, and anyone can Host anywhere – a no brainer for people to consider hosting amidst economic flux.
To find out more about hosting go to airbnb.com/host and get started.
About Ansel Troy
Ansel Troy is an Airbnb Super host in his hometown of Oakland, CA. His entrepreneurial start began when he was 14 selling newspaper subscriptions to help his mother with groceries and bills. With a propensity for helping others, he graduated from California State University East Bay with a degree in Ethnic Studies and pursued a career in Social Work.
In 2013, he purchased a small fixer upper home in East Oakland and spent the next few years making
DIY renovations. Four years later, Ansel was looking for a way to earn some passive income - he decided to lean into the tiny home craze and used the equity from his home to purchase a Tiny House to list on Airbnb. He didn’t have the funds to invest in contractors or designers for the fitout, so dove into a self-prescribed DIY YouTube rabbit hole to get the space ready to list. He parked the Tiny House in his backyard ; guests loved the experience and responded with rave reviews.
A few years into his Hosting journey, his son was diagnosed with Autism. Looking to spend more time at home with his son, Ansel decided to share his tiny home full-time, generating a source of income that helped to lighten the burden of worrying how he would care for him. In 2021, he resigned from a 13-year career in Social Work and currently works from home as a full-time Airbnb Host and Tiny House consultant.
Airbnb was born in 2007 when two Hosts welcomed three guests to their San Francisco home and has since grown to 4 million Hosts who have welcomed more than 1 billion guest arrivals in almost every country across the globe. Every day, Hosts offer one-of-a-kind stays and unique Experiences that make it possible for guests to experience the world in a more authentic, connected way.